Miner ceased operation on Rennell
By EDDIE OSIFELO
THE Mines and Mineral Board has cancelled the mining licence of Asia Pacific Investment Development (APID) Limited.
This was after APID’s mining contractor, Bintan Mining SI Limited failed to carry out bauxite mining on Rennell Islands in the last two years during the Covid-19 outbreak.
Minister of Mines, Energy and Rural Electrification permanent secretary, Dr Christopher Vehe said from what he got from the Mines and Mineral Board, there was no operation done due to covid-19 which left the project idle.
Vehe said APID is challenging the Mines Board for its decision to cancel its licence in court at the moment.
However, he said Nickel Enterprise SI Limited has submitted a letter of intent to the Ministry to mine bauxite on Rennell Island.
The company is owned by a Singapore based company, Solomon Enterprise PTE Limited.
Vehe said the Director of Mines and Secretariate of Mines and Mineral Board have carried out due diligence and found Nickel Enterprise SI Ltd has close associate with Bintan Mining SI Ltd.
He said Nickel Enterprise SI Ltd submitted its application during the leadership of former Director of Mines, Nicholas Biliki.
As such, no company is endorsed by the Mineral Board to mine the bauxite on Rennell Island at the moment.
At the same time, APID, which holds the mining licence over the tenement on Rennell is challenging a judicial review on the Mineral Board’s decision to cancel its licence.
APID directors are Khen Chu and Rachel Fasifera.
Fasifera holds 100 shares of the company.
While Bintan Mining SI Limited is the subsidiary company of Bintan Mining Corporation (“BMC”) incorporated in the British Virgin Islands.
It was revealed BMC was in a shareholders’ voluntary liquidation on 25 March 2021 pursuant to sections 159 and 161 of the BVI Insolvency Act 2003, and the liquidator was appointed on the same date.
The members of the Creditor’s Committee of BMC have been appointed at the creditors’ meeting held on 13 April 2021.
This announcement is made by China Creative Digital Entertainment Limited (the “Company”) on a voluntary basis pursuant to Rule 17.10 of the Rules Governing the Listing of Securities on the GEM of The Stock Exchange of Hong Kong Limited (the “GEM Listing Rules”) and the provisions of inside information under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the laws of Hong Kong).
The purpose of this announcement is to keep the shareholders and potential investors of the Company informed of the latest business development of the Company and its subsidiaries (the “Group”).
BMC is a limited company incorporated in the British Virgin Islands and its principal activity is operating a bauxite mine in Rennell Island, Solomon Islands.
The mining site covers 560 km2 and the bauxite reserves are estimated to be 31.5 million dry metric tons.
2,148 shares of BMC was held by the Group, representing 10.57% of the issued shares capital of BMC.
The investment cost in BMC was HK$90,000,000 (SBD$93,591,360.09).
As at 30 June 2020, according to annual report of the Company, the fair value of BMC was HK$23,992,000 (SBD$24,949,376.79) and such fair value represents approximately 5.51% in the Company’s total assets.
For the year ended 30 June 2020, the change in fair value arisen from BMC was HK$47,654,000 (SBD$49,555,585.26) while the total amount of dividends received from BMC was nil.
PS Mines, Vehe said he is aware of the liquidation of BMC and one reason the Ministry do not accept any application for the bauxite mining on Rennell Island.
One landowner of Rennell told Island Sun they have not receive any royalties from 33 shipments since the mining halted.
He said the company need to sort out their royalties and Community Development Agreement because they have missed out and also Rennell and Bellona Province.
In the meantime, Attorney General John Muria Junior confirmed to media recently that his has submitted a claim that amounts to millions of dollars to insurer Korea Protection and Indemnity Club (KP&I) for the 2019 oil spill on Rennell.
This was after the Government ratified the International Convention on Civil Liability for Bunker Oil Pollution Damage (‘Bunkers Convention’) last year.
The accession to the Bunkers Convention was triggered by the grounding of Hong Kong based MV Solomon Trader in February 2019.
The bulk carrier spilled more than 300 tonnes of heavy fuel oil into Kagava Bay, Rennell Bellona Province, which is close to the World Heritage site at Lake Tengano.
“At the moment we are still waiting for their response.
“But we are very hopeful,” Muria Junior said.
A detailed environmental damage assessment commissioned by the Government on the Rennell Oil Spill has concluded that the grounding of the ship MV Solomon Trader and the subsequent oil spill caused significant ecological impacts and economic losses in the order of $112 million (US$14 million) to $304.6 million (US$38 million).